FX.co ★ CAC 40 Continues Uptrend on Fed Rate-Cut Bets

On Wednesday, the CAC 40 index saw a 0.4% increase, reaching approximately 8,055—a level close to its highest in over a week. This rise was driven by growing optimism about a potential Federal Reserve interest rate cut, following weak economic data from the U.S. The aerospace and luxury sectors were at the forefront of this upswing. Safran experienced a 0.5% gain after revealing a joint venture with Bharat Electronics in India to broaden its civil and military aerospace activities. Meanwhile, Thales increased by 0.9%, and Airbus saw a more significant climb of 1.3%. The luxury market also bolstered the index, with Kering and LVMH rising by 1.3% and 0.9%, respectively, and Hermès showing a 0.7% uptick. On the contrary, Pernod Ricard fell by 1.6% due to the distribution of its final dividend of €2.35 per share for fiscal 2025. Other noteworthy declines were seen in Stellantis NV, which dropped 1.3%, as well as ENGIE and Publicis, both down by 0.6%.